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consider a two period endowment economy assume that households preferences are described by the following utility function sqrtc1 111sqrtc2 where c1 and c2 denote consumption in periods 1 an 52995
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SOLVED:Draw a utility function over income u(I) that describes a man who is a risk lover when his income is low but risk averse when his income is high. Can you explain why such a utility function might reasonably describe a person's preferences?
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